- Anna’s Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna holds an auction between the two bidders, and both the bidders have low values, she would earn ___ from the auction. a.$70 b.$100 c.Just above $100 d.Just above $70
QUESTION 2
- To attract more bidders, and more aggressive bidders, to your common-value auction a.do not allow potential bidders to examine the object too closely b.allow bidders to know how others are bidding c.do not hold oral auctions d.withhold relevant information about the value of the object
QUESTION 3
- In a sealed-bid first price auction, if you notice that your competition is stronger, you should a.Shade your bid more b.Shade your bid less c.Bid more aggressively d.Both B&C
QUESTION 4
- Anna’s Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna holds an auction between the two customers, the expected value of this auction is a.$85 b.$70 c.$78 d.$100
QUESTION 5
- Economists love auctions because a.They maximize consumer surplus b.They create efficiency by allotting the item to the highest-value bidder c.They create efficiency by allotting the item to the lowest value bidder d.All of the above